A large number of service providers, including lawyers, accountants, real estate agents and consultants, have asked to attend the event. While I personally love my lawyer and accountant, we can’t allow every service provider in the world into the event or it will be 90% service providers. In order to resolve this issue, I’ve come up with a revolutionary concept: charge the service providers to attend the event. In fact, that is the business model of the Open Angel Forum: free for startups, free for angel investors and very expensive for service providers.
The good news is that by charging a substantial fee, we are eliminating a lot of the annoying, cheap and low-rent service providers. Those type of folks are already complaining to me about the fee--which is exactly what I want.
Any decent lawyer or accountant of note will look at the fee and say "$1,500 is a lot for dinner, but if I attending eight of these over two years and get one client it pays for itself." That is to say, the right providers will take a long-term approach to this.
We've got a sick group of angels already lined up for the 14th, and you don't have to be a startup from Los Angeles to apply to present. You can be a startup from anywhere around the world (although closer to California is obviously better since most angels like to invest within a one hour flight of the startup).
The angels coming will have 200-300 angel investments between them I think... really exciting, super qualified and intimate. I'm trying to get 100% of the companies that present funded.
I often feel like service providers are hawks at these events. They just seem too me too esque and want to offer you things you probably shouldn't be spending on. The things I should be spending on like a lawyer or accountant (thats debatable depending on your stage/finances) I will get through a personal referral. I do a lot of events for MIT in Florida and it's often a large number of service providers that show up. It's good in one sense, because we can educate them on things that are important. On the other hand, it bothers me, because it detracts the value away from our main attendees- the entrepreneurs.
The intention behind this kind of event is awesome. Focus on getting the founders and the funders to talk (whilst allowing serious service-providers to come and catalyse the reactions between these two parties) and you're bound to create some awesome companies.
Thanks pal. Really hope we see a lot of y-combinator folks sign up to pitch! Note: you don't have to be based in LA or California to present... we'll take a great idea from anywhere in the world.
very exciting news; and definitely a great list of angels involved in the event. In light of all the market pressure and negative effects on the VC industry, an opportunity like this for startups is priceless, literally. Great stuff. We will definitely be applying.
Makes sense to me.